Summary of the Farrow to Finish Swine Enterprise Budgets - 2004 to 2009

Tuesday Mar 09 2010
by Doug Richards

The Swine Enterprise Budgets provide a guide to determining the costs of production for a swine enterprise. The cost figures are estimates based on information from a variety of sources within the Ontario industry. They are not obtained from an actual survey. Monthly budgets are calculated based on the current market hog and feed prices to provide an indication of the trend of income and expenses. Individual farm figures will vary depending on the resources, management, production, market conditions, risk and financial arrangements!

Summary (C$/pig)	2004	2005	2006	2007	2008	2009
Market hog value	164.12	149.34	131.93	127.08	128.15	122.91
Feed costs	86.55	70.03	70.91	85.50	104.00	103.52
Other variable costs	35.12	37.47	37.92	42.21	42.41	38.34
Fixed costs	23.69	27.40	25.20	24.88	21.06	20.85
Total cost per pig	145.36	134.90	134.03	152.59	167.47	162.70
Net return	18.76	14.44	-2.10	-25.50	-39.31	-39.79

	2004	2005	2006	2007	2008	2009
Calculated return over feed costs (market hog value less feed costs)
C$ per pig	77.57	79.31	61.02	41.58	24.15	19.39

	2004	2005	2006	2007	2008	2009
Calculated break-even prices (C$/ckg. 100 index) to cover
Variable costs	124.22	108.23	108.74	126.64	144.59	139.89
Total costs	148.41	135.82	133.91	151.32	165.37	160.44
** 100 index market hog calculated using the average monthly dressed weight and index **

	2004	2005	2006	2007	2008	2009
Market information
Dressed weight (kg)	90.19	90.97	91.68	92.38	92.73	92.90
Market Index	108.60	109.18	109.17	109.16	109.20	109.16
Market price ($/ckg, 100 index)	167.56	150.36	131.82	126.02	126.55	121.20
Corn (FOB Huron, $/tonne)	136.21	102.85	110.60	151.24	197.42	166.47
Corn (Western Ont. Feed, $/tonne)	147.08	112.08	125.04	170.85	212.77	181.82
Soybean meal (Hamilton $20, $/tonne)	388.20	298.46	266.45	321.31	438.45	496.27
US reference price (US$/cwt)	71.72	68.24	64.44	64.38	65.59	56.34
Canadian dollar value ($)	0.7697	0.8254	0.8819	0.9348	0.9390	0.8747
Prime interest rate (%)	4.00	4.40	5.76	6.08	5.10	2.64

Special notes:

The Ontario market hog information is collected and calculated from Ontario Pork sales data. Feed costs are mainly based on farm produced feed using daily prices for corn and soybean meal average values along with supplement and premix values collected from a number of feed companies. The other variable costs include the net cost of breeding stock replacements, health, breeding, marketing, utilities, barn supplies, office, miscellaneous, custom manure disposal, repairs and maintenance, labour and operating loan interest at prime plus one per cent. Fixed costs include depreciation, interest, property taxes and insurance. From 2004 to 2005 and 2007 to 2009, a cost was included in the variable costs for manure disposal. In 2006, it was assumed that the cost of manure disposal was offset with a value for the cropping enterprise.

March 2010

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